HB277 Alabama 2015 Session

Summary

Primary Sponsor

John F. Knight Jr

Democrat

Session

Regular Session 2015

Title

Insurance premium tax, credits against, repealed, Sec. 27-4A-3 am'd.

Summary

HB277 would repeal three tax credits for insurance companies under the Alabama premium tax, removing credits for office facilities, real property investments, and certain ad valorem/privilege taxes.

What This Bill Does

If enacted, the bill would remove (repeal) the Alabama Premium Tax credits used by insurers. This would likely increase the premium tax liability for insurers paying the tax and redirect more revenue to state funds under existing distribution rules. The changes apply to taxable years beginning after December 31, 2015, and the rest of the premium tax framework remains in place.

Who It Affects

• Insurers subject to the Alabama premium tax (both domestic and foreign): would lose the three credits, increasing their tax payments.
• State government and specific funds (General Fund, Education Trust Fund, Alabama Special Mental Health Trust Fund): would receive more premium tax revenue due to the removal of credits.

Key Provisions

• Repeal the Alabama Insurance Office Facilities Credit (credit for insurer office facilities in Alabama).
• Repeal the Alabama Real Property Investment Credit (credit for real property investments in Alabama by insurers).
• Repeal the ad valorem and privilege tax credits currently allowed to insurers subject to the premium tax.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance